ICTU says pay transparency rules delay 'unacceptable'

The Irish Congress of Trade Unions (ICTU) has branded delays in implementing new EU rules on pay transparency as unacceptable.

The measures are supposed to come into force from Sunday but Ireland has said it will miss the deadline.

The EU Pay Transparency Directive aims to combat pay discrimination and help close the gender pay gap in the European Union.

Under the new rules, employers will be required to share information on salaries and take action if their gender pay gap exceeds 5%.

Companies must provide job candidates with salary details and interviewers can no longer ask candidates about pay history.

Existing employees can request pay information to see how their pay compares to the average paid to colleagues doing comparable work.

The Government has said that the measures will come into force on a phased basis and that in the meantime employers will not be penalised for non-compliance.

ICTU said the failure to transpose the pay transparency directive on time will cost working women more than €570 million per year in lost wages.

"This delay comes at a hefty price of over half a billion euro per year from the wage packets of working women," said ICTU General Secretary Owen Reidy.

"It is simply unacceptable that all we have had from Government to-date are words of comfort to employers that they have an indefinite free pass on unequal pay," Mr Reidy said.

Employers facing 'anxiety and uncertainty'

Business groups have warned that a lack of clarity from the Government on pay transparency has led to uncertainty for companies.

"The lack of detail surrounding the rollout is contributing to a sense of anxiety and uncertainty amongst Irish employers," said Moira Grassick, of HR consultancy Peninsula Ireland.

"Employers have been left wondering when the first stage might suddenly come into effect, and which aspects of the directive will be covered at that point."

"This uncertainty makes it challenging for employers to plan, prepare, and get ahead of this extensive legislation," Ms Grassick said.

Ibec said that businesses still lack the required details that are so vital to employers being in a position to properly prepare for the new rules.

"Throughout this process, Ibec has been clear that employers cannot be pushed into non-compliance due to insufficient resources or time being afforded to them," said Head of Employment Law Services at Ibec Nichola Harkin.

"Providing this certainty to both employers and employees on the likely timeline for transposition will facilitate much better compliance with the laws once they are passed," Ms Harkin said.

Government says implementation is 'a challenge'

The Department of Children, Disability and Equality said the Government is fully committed to the complete and meaningful implementation of the Pay Transparency Directive.

"The implementation of the EU Pay Transparency directive is a challenge for many EU member states, with the majority indicating they will not be in a position to meet the 7 June deadline," a spokesperson said.

The department said a "number of factors" had led to the delay.

"A series of European workshops on the transposition of the Directive were not completed until late September 2025, and the employer guidance and toolkit developed by the European Institute for Gender Equality (EIGE) and the European Commission was not published until the end of March this year," the Department said.

The Government said that previously enacted gender pay gap legislation has transposed a large portion of the Pay Transparency Directive.

"Work is ongoing at pace to develop the necessary legislation to transpose the remaining provisions of the Pay Transparency Directive as soon as possible," the Department said.

"The Department will work with employers, employees and their representatives to support and enable implementation of the Directive, which will be on a phased basis once the passage of the legislation is complete," it added.

Read more: EU Pay Transparency Directive - what it means for Irish businesses